Each bank in Azerbaijan has in average 6,1m AZM

Business Materials 1 April 2006 12:37

According to the Azerbaijan National Bank data on March 1, 2006, the total capital of all active in Azerbaijan banks has grown on 25, 5 % and reached 266, 3m AZM, NB told Trend. With the decision of government, state banks founding capitals have increased in the last December, reaching 35, 8m AZM the same figure has remained unchanged in January and February this year. However, the founding capital growth in private banks is 2, 9% and by March 1, 2006 it has reached 230, 5m AZM. Considering that it is still beginning of the year, banks are not in hurry to increase the founding capitals, as there is still some time left before the NB normative order (deadline is on July 1, 2006)on founding capitals has to be performed. Today, founding capital average amount for each bank is 6,1m AZM.

22,6m AZM are now located in banks with the 100% founding capital and 1,2% annual decrease. The total weight of all banks with foreign founding capital grew from 32, 9% to 42, 6% by March 1. Though, growth of 100% foreign capital has decreased on 0, 2%. The total share of the foreign investments is 48, 7m AZM. Their total weight in general is 21, 1%.

By March 1, 2006, 129 credit organizations have received licenses for bank activity, 85 of them are non-bank credit organizations, their number remained unchanged this year, though, 2 licenses were withdrawn and 2 other were provided. From 44 active in the country banks, 41 banks have the permission to attract investments, 43 permission to work with currency, 2 with valuable metals, 41- to give mortgages, 34- to operate with the plastic cards. The number of branch office has grown in 36, now there are 375 branch offices in total.

There are 18 banks in Azerbaijan with foreign capital, 7 of them have 50 to 100 % share division of foreign capital, 11 of them less than 50%. There are also two branch offices of the non-resident banks.